(a) What happens to the fundamental value of a country's exchange rate when it raises its money supply in a fixed exchange-rate system?
Does this make the currency overvalued or undervalued if originally the official rate equaled the fundamental value?
(b) What happens to the fundamental value of a country's exchange rate when the foreign country raises its money supply? Does this make the currency overvalued or undervalued if originally the official rate equaled the fundamental value?
(c) So, if a country wants to maintain its official rate equal to its fundamental value, what must it do when the foreign country raises its money supply? What happens to inflation?
(a) Fundamental value falls below the official rate, so the currency is overvalued.
(b) Fundamental value increases above the official rate, so the currency is undervalued.
(c) The country must raise its money supply. This leads to inflation worldwide.
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Who among the following is neither employed nor unemployed?
a. Veronica, currently jobless because the company she worked in went out of business but who is available for work. b. Robin, who is a journalist working as a news reporter in B2B News Channel c. Mitch, who mows lawns in his neighborhood but does not report his income d. Robert, who works part-time at Kent's Snack Bar as he wants more time to study
Sources of external economies of scale include
A. larger firm size that results in volume discounts. B. larger industry size that `results in lower production costs. C. larger plant size that allows the plant to take advantage of technology. D. All of the above are correct.